High inflation rates across Europe coincides with an economic slowdown and low growth, while both individuals and businesses need to be prudent and focus on the long term, he warned.

De Guindos stressed that the euro area is going through a superficial and short-lived recession before the economy returns to growth in the second quarter.

This situation undoubtedly represents a challenge for companies and their sustainability, since with a recession on the horizon accompanied by the current high level of uncertainty, it creates difficulties for entities and businessmen, he pointed out.

De Guindos reiterated that decisions on rate hikes will continue until inflation is redirected close to the two percent target.

He also predicted a brief and shallow recession in the euro zone at the end of the year, but with a recovery starting in the second quarter of 2023 and continuing in 2024 and 2025.

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